The two sides of the Xiaomi YU7 myth: Car owners are waiting anxiously, scalpers are getting involved, competitors are poaching customers, and the supply chain is under strain.
"When I enter the store, I don't even need to introduce the parameters. Many car owners only ask two questions: one is when they can pick up the car; the other is if there are any vouchers." Recently, when "Financial Story Collection" visited a Xiaomi Auto direct - sales store in Beijing's Hopson One Mall, salesperson Wu Hua (a pseudonym) said optimistically.
He described the scene of car owners purchasing the Xiaomi YU7 offline. Since its launch on June 26th, the large - order volume of the Xiaomi YU7 exceeded 289,000 units within an hour.
What does this concept mean? Looking at the new - force track, in the whole year of 2024, the delivery volumes of Li Auto, NIO, and XPeng were 504,500 units, 221,900 units, and 190,000 units respectively. That is to say, the large - order volume of the Xiaomi YU7 within an hour exceeded the total annual delivery volumes of NIO and XPeng, and was more than half of Li Auto's. Recall that for the Xiaomi SU7, the large - order volume within 24 hours was only 88,900 units.
Why is there such a large difference in the order volumes between the Xiaomi SU7 and the Xiaomi YU7, both of which are produced by Xiaomi? On the one hand, compared with sedans, Chinese car owners prefer SUVs; on the other hand, before the launch of the SU7, the brand power of Xiaomi Auto was not well - known.
A car owner who made a blind order for the YU7 said, "Before the launch of the Xiaomi SU7, women, including my wife, questioned how Xiaomi could sell cars priced at 200,000 - 300,000 yuan. Now, both we and her girlfriends are ready to grab the YU7."
Looking at the essence through the phenomenon, why are users willing to buy the Xiaomi YU7 in large quantities? Which competitors have been stimulated by the impact wave of the Xiaomi YU7? What measures have the competitors taken to deal with the popularity of the Xiaomi YU7?
Anxious car owners and a strained supply chain
The Xiaomi YU7 is so popular. Who is actually placing the orders?
During the live - broadcast on July 2nd, Lei Jun, the Chairman and CEO of Xiaomi Group, revealed that the average age of the reservation owners of the Xiaomi YU7 is 33 years old, about 3 years older than the owners of the Xiaomi SU7. Among them, the proportion of female car owners is higher, reaching 30%, 5 percentage points higher than the 25.5% of female car owners of the Xiaomi SU7. They are mainly concentrated in cities such as Shanghai, Beijing, and Hangzhou.
The target group of Xiaomi Auto is precisely the mainstream group in the new - energy field. Relevant media surveys show that the age group from 26 to 45 years old (i.e., the post - 80s and post - 90s) accounts for 65.1% of new - energy users.
Why the Xiaomi YU7?
"It meets almost all the needs of car owners at a price acceptable to the public." A car owner who watched the entire press conference of the Xiaomi YU7 and quickly placed an order on the same day told "Financial Story Collection".
Another prospective owner of the Xiaomi YU7 said, "The biggest selling point of the Xiaomi YU7 is that it allows users to have an experience like that of a Ferrari. The biggest difference is that it is cheaper than a Ferrari."
"No one can match the 'emotional value' that Mr. Lei provides to users. Not to mention new - force car companies, the stickiness of Xiaomi fans is even higher than that of some long - established car companies." A salesperson of Avatr on the fifth floor of Beijing's Hopson One Mall couldn't hide his envy.
On July 6th, the Xiaomi YU7 officially started nationwide deliveries. From the videos and pictures posted by many netizens, it can be seen that Lei Jun personally delivered the first batch of new YU7 cars to the owners at the Beijing Xiaomi Science and Technology Park and opened the car doors for them. Previously, when the Xiaomi SU7 was delivered, Lei Jun did the same. Moreover, he invited the prospective owners of the Xiaomi SU7 Ultra to dinner and had a chat.
To some extent, the Xiaomi YU7 meets the comprehensive demands of car owners for configuration, performance, and appearance - both in terms of functionality and emotion.
However, the long waiting list has become a common pain point for car owners. "To wait or not to wait, that is the question."
It is understood that on the Black Cat Complaint Platform, several prospective owners of the Xiaomi YU7 have filed complaints. "At first, I didn't know the delivery time when I placed the order. I only found out after locking the order." A car owner who just placed an order for the standard version of the Xiaomi YU7 said helplessly, "I have to wait for about a year to pick up the car. Although I really like the Xiaomi YU7, my license plate quota can't wait, and there will be hidden expenses if I extend the quota later."
Another prospective owner of the Xiaomi YU7, who has to wait for nearly a year to pick up the car, is considering switching to NIO. He said that a year is too long, and the tax - exemption policy for electric vehicles will expire at the end of this year. The policy for next year is still unknown. "I can't wait any longer. Taking advantage of the current popularity, NIO even reimburses the deposit for the Xiaomi YU7."
According to Wu Hua, currently, the waiting time for the standard version of the Xiaomi YU7 is the longest, and the waiting time for the Max version is a bit shorter. Specifically, the earliest delivery time for the standard version after locking the order is 53 - 56 weeks, 48 - 51 weeks for the Pro version, and 33 - 36 weeks for the Max version.
In response to netizens' concerns about the long delivery cycle, during the live - broadcast on July 2nd, Lei Jun unexpectedly recommended the models of competitors: "If you are in a hurry to use a car, you can consider the XPeng G7, the Li Auto i8, or even the Model Y. Tesla has recently launched many preferential policies."
Behind the long waiting time for car owners is the insufficient production capacity of Xiaomi Auto. It is reported that currently, Xiaomi Auto only has one vehicle manufacturing plant in the Beijing Economic - Technological Development Area, with an annual production capacity of 150,000 vehicles. Although Xiaomi Auto has specially built the second - phase project of the intelligent manufacturing industrial base for the YU7, the production start date has not been determined. Even if this project starts production immediately, the combined annual production capacity of the two - phase projects of 300,000 vehicles can only barely meet the production of two models.
The production - capacity bottleneck has not been broken through, and the supply - chain system is facing new challenges. The popularity of the Xiaomi YU7 has also caused a chain reaction in the supply - chain system.
A supplier representative Deng Hui (a pseudonym), who preferred to remain anonymous, said that the surge in orders for the Xiaomi YU7 has left Xiaomi's suppliers both happy and worried. On the one hand, the booming order demand brings potential considerable revenue. Taking Huayang Group, the exclusive supplier of AR - HUD, as an example, the YU7 orders are expected to bring an annual revenue increase of 800 - 1 billion yuan. On the other hand, the capital - turnover pressure has also increased sharply. Many suppliers cannot get cash immediately, and they may face capital - turnover pressure with a large number of orders.
However, Lei Jun has obviously considered this problem. It is understood that Xiaomi has launched special credit products for suppliers in cooperation with banks. Currently, it has cooperated with China Merchants Bank, Shanghai Pufa Bank, Bank of Communications, etc.
The Xiaomi Tianxing Supply - Chain Financial Platform is a typical example. It provides one - stop supply - chain solutions for customers and businesses in different industries. To some extent, it can alleviate the problem of suppliers being unable to cash in due to the unexpired time. A staff member of this platform gave an example to "Financial Story Collection": "If a supplier has an acceptance bill with a payment date in October, but needs funds in July and the bank cannot approve it, the supplier can hand over the acceptance bill to us for cashing, thus relieving the capital pressure."
Interestingly, the long waiting time for picking up the Xiaomi YU7 also affects the commission payment of Xiaomi Auto salespeople. "Our commissions are paid in two installments. We get half when the car owner places an order and the other half when the car is picked up." Wu Hua told "Financial Story Collection", "Some of my colleagues left the company before getting the second - part commission."
However, although the booming orders have greatly increased the workload and the long delivery cycle has postponed the commission payment, compared with those new - force car companies that suddenly went bankrupt, such as Jiyue and Nezha, the hot - selling Xiaomi YU7 at least makes the salespeople of Xiaomi Auto feel unprecedented security.
Alleged scalpers enter the market, but it's not easy to make a profit
The tight production capacity and long waiting list of the Xiaomi YU7 have also made some scalpers smell a money - making opportunity. They plan to quickly grab orders to get a more forward waiting position and then transfer them at a higher price to make a profit.
However, it doesn't seem easy to make this money.
"I was in the first batch to place an order. I can pick up the car in 20 - 23 weeks. I've already been added to the delivery group. As long as you make up the 5,000 - yuan deposit for me, we can discuss the other price." On the Xianyu second - hand trading platform, a seller from Ordos, Inner Mongolia, told "Financial Story Collection". He is a prospective owner who placed an order for the standard version of the Xiaomi YU7 at 10 p.m. on June 26th. According to the order he provided, the vehicle is waiting to be produced.
A seller who claims to be in Hainan is also transferring the standard version of the Xiaomi YU7. "The delivery expert has already added me to the delivery group. The vehicle is in production, and it is expected to be picked up in 31 - 34 weeks." He said, "I'm transferring it at the original price. Just give me the deposit. I think the waiting time is a bit long, and I'm in urgent need of money now, so I'm reluctantly transferring it."
It is understood by "Financial Story Collection" that on Xianyu, some individual car owners, like the above two sellers, transfer their orders because of the long delivery cycle or because they don't like the configuration. In addition, some are allegedly "scalpers" trying to transfer orders at a premium to make a profit.
"I want to make some extra money." A seller from Beijing, Guo Qiang (a pseudonym), told "Financial Story Collection". He is transferring the Max version of the Xiaomi YU7 and clearly stated that the car can be picked up immediately in the Beijing area, with a marked price of 10,000 yuan. "The vehicle has already arrived at the delivery center. As long as you buy the order, you can immediately find the delivery expert to pick up the car." He said, "The 10,000 - yuan is the premium price, and you also need to give me the 20,000 - yuan deposit. There are no other additional fees."
Another Beijing seller claimed that he has 14 orders for different versions of the Xiaomi YU7 waiting to be sold. "The prices vary for different versions and different pick - up dates. I'll give you a quote after you choose an order." He told "Financial Story Collection" that the standard version of the Xiaomi YU7 generally has a premium of 3,000 - 4,000 yuan.
Does Xiaomi Auto officially allow order transfers? "Financial Story Collection" called Xiaomi Auto's official customer service, and they clearly stated that within 168 hours (i.e., 7 days) after paying the deposit, the car owner who placed the order can modify the vehicle configuration of the YU7 at any time. However, after locking the order, since the vehicle has been scheduled for production, the order information such as configuration, license - plate owner, and delivery center cannot be modified, and the deposit is non - refundable.
It is understood that as early as at the press conference, Lei Jun specifically mentioned measures to prevent scalpers, clearly stating that one user can only place and lock one order.
So, how can orders be transferred in this situation? Currently, there are three ways.
Firstly, transfer the order before locking it and submit the buyer's information. Xiaomi officially gives car owners who placed orders a 7 - day hesitation period. During this period, they can change the configuration, license - plate owner, or cancel the order. After the hesitation period, the order will be automatically locked. Although this method is formal, it doesn't make much sense because the current production schedule is almost a year long, which cannot meet the demands of car owners who want to pick up the car quickly.
Secondly, transfer the order after locking it but before picking up the car by changing the license - plate owner information. Although the official clearly states that after locking the order, the order information such as configuration, license - plate owner, and delivery center cannot be modified, and the deposit is non - refundable, it's not absolute. "Although the vehicle is not allowed to be transferred after locking the order, there is one chance to change the license - plate owner information, but it must be a direct - line relative." A Xiaomi Auto official customer - service staff told "Financial Story Collection".
"In principle, we don't allow changing the license - plate owner information after locking the order to prevent some'scalpers' from reselling. However, if some car owners who placed orders really filled in the wrong information, we can change it for them." Xiaomi Auto salesperson Wu Hua told "Financial Story Collection" helplessly.
This measure, originally intended for the benefit of car owners, has given scalpers an opportunity. "I have a way to change the license - plate owner information before picking up the car, but it's only applicable in Beijing." Guo Qiang told "Financial Story Collection". When asked how to transfer the order, Guo Qiang said, "You can think of it as me not having a Beijing license - plate quota, so I'll register the car under your quota. After you pay the balance, it's like buying a new car."
Some sellers also revealed that "some'scalpers' will use fake direct - line relative certificates to ask the salesperson to change the car owner, but we individual sellers generally won't do this because it's not worth it."
In response, Wu Hua advised car owners, "I don't recommend that car owners buy transferred orders on some platforms to avoid being deceived. Previously, a car owner contacted me saying that they bought an order from one of my customers, but after I communicated with the customer, I found that the customer had never transferred the order and didn't even know about it. This clearly violates the rights and interests of our car owners."
The third way is to transfer the car after picking it up and transfer the ownership to the buyer through a second - hand car transaction. This requires the buyer to have a license - plate quota in the same area. The individual sellers from Inner Mongolia and Hainan mentioned above both transfer the cars in this way. "The only way I know so far is this second - hand car transfer." The Inner Mongolia seller said, but this has a drawback. "You can't apply for the 15,000 - yuan replacement subsidy or 20,000 - yuan scrapping subsidy because these are only available to the first - owner." He said.
Regardless of the method, order transfer has risks, and car owners should choose carefully. "Our platform only provides a communication bridge for buyers and sellers. Vehicle transactions are strictly regulated, and direct online transactions are not allowed. The subsequent transactions need to be negotiated and agreed upon by both parties." The official Xianyu platform said.
Anxious competitors try to "intercept" customers
While the alleged "scalpers" on second - hand car platforms are trying to resell orders at a higher price, looking at the large - order data of 289,000 units of the Xiaomi YU7 within an hour, some competitors are probably losing